• Coinbase CEO Brian Armstrong tweeted that he has heard rumors from the SEC about banning retail investors from engaging in cryptocurrency staking.
• This technique is at the core of running blockchains including Ethereum.
• The SEC declined to comment on the matter.
Coinbase’s CEO Cites ‘Rumors’ About a Possible Ban On Staking for Retail Customers
Coinbase CEO Brian Armstrong recently took to Twitter to express his concerns about a possible ban on cryptocurrency staking for retail customers by the U.S Securities and Exchange Commission (SEC). He believes that if this were allowed to happen, it would be “a terrible path for the U.S.”
What is Cryptocurrency Staking?
Cryptocurrency staking is an income-generating technique at the core of running blockchains such as Ethereum. It allows users to earn rewards when they hold their coins in a wallet or ‘stake’ them, rather than trading them on exchanges like Coinbase or other platforms.
SEC Response To Rumors
When asked about these rumors, the SEC declined to comment, leaving many in the industry surprised and concerned over the potential implications of such a ban. While there has been no official statement released yet, Chairman Gary Gensler has previously suggested that cryptocurrencies which allow staking could be classified as securities under certain circumstances.
Brian Armstrong’s Reaction
In response to these rumors, Armstrong expressed his hope that this would not be allowed to happen, describing it as a “terrible path” for the U.S economy should it come into effect. However, he also urged people not to panic yet as there has been no confirmation from any official source so far.
Conclusion
At present, there is still uncertainty surrounding what will happen with regards to cryptocurrency staking for retail customers in America and whether or not there will be any changes introduced by the SEC soon. Until more information is released from an official source, all we can do is speculate and wait for further updates in order to gain more clarity on this matter.